Wednesday 19th February 2025: Asia-Pacific Markets Mixed as U.S. Tariff Plans Weigh on Sentiment

Global Markets:

•  Asian Stock Markets : Nikkei down 0.34%, Shanghai Composite up 0.65%, Hang Seng down 0.33% ASX down 0.76%
• Commodities : Gold at $2952.35 (0.13%), Silver at $33.35 (0.28%), Brent Oil at $76.4 (0.2%), WTI Oil at $72.7 (0.3%)
• Rates : US 10-year yield at 4.547, UK 10-year yield at 4.5575, Germany 10-year yield at 2.490

News & Data:

• (CAD) CPI m/m  0.1% to 0.1% expected
• (CAD) Median CPI y/y  2.7% to 2.5% expected
• (CAD) Trimed CPI y/y  2.7% to 2.6%expected

Markets Update:

Asia-Pacific stocks showed mixed performance on Wednesday after U.S. President Donald Trump proposed 25% tariffs on autos, semiconductors, and pharmaceutical imports. Japan’s Nikkei 225 dropped 0.38%, while the Topix index fell 0.31% as the country reported a two-year high trade deficit. However, business sentiment among Japanese manufacturers improved for the second consecutive month, with the Reuters Tankan index rising to 3 from 2 in January.

In South Korea, the Kospi surged 1.83%, and the small-cap Kosdaq gained 0.62%. Mainland China’s CSI 300 rose 0.42% in volatile trading, while Hong Kong’s Hang Seng declined 0.33%. Indian markets rebounded, with the Nifty 50 up 0.21% and the BSE Sensex climbing 0.38%. Meanwhile, Australia’s S&P/ASX 200 dropped 0.73% to 8,419.20 after the central bank cut interest rates by 25 basis points to 4.10%, marking its first reduction since November 2020.

New Zealand’s central bank cut interest rates by 50 basis points to 3.75% in line with expectations, marking its fourth consecutive cut amid slowing economic growth. Following the decision, the New Zealand dollar weakened 0.33% to 0.5719 against the U.S. dollar.

In the U.S., all three major indexes closed higher. The S&P 500 gained 0.24% to a record 6,129.58 after briefly touching 6,129.63. The Nasdaq Composite inched up 0.07% to 20,041.26, while the Dow Jones Industrial Average added 10 points to close at 44,556.34. The energy sector led the S&P 500 with a 1.9% gain, and tech stocks also advanced.

Upcoming Events: 

• 01:30 PM GMT – USD Housing Starts
• 01:30 PM GMT – USD Building Permits
• 07:00 PM GMT – USD FOMC Meeting Minutes

The post Wednesday 19th February 2025: Asia-Pacific Markets Mixed as U.S. Tariff Plans Weigh on Sentiment first appeared on IC Markets | Official Blog.